The document describes various project management tools and techniques including: work breakdown structures, network diagrams, critical path analysis, Gantt charts, resource planning, procurement planning, cash flow statements, quality, risk, and communication plans. It provides examples and explanations of how to develop and use these tools to plan, schedule, and manage a project. Key terms like floats, early and late start/finish dates are defined. Methods for accelerating a project schedule through crashing or fast tracking are also outlined.

1. PROJECT MANAGEMENT TOOLS
Learning Unit 3

2. Learning Unit Objectives
Describe and use key project management tools and techniques;
Explain (with the aid of examples from a project), the advantages
and limitations of different project management tools and
techniques;
Develop a project plan for a simple project using a selected
number of project management tools;
Be able to adapt the project plan with updates to the project
schedules;
Accelerate a project’s schedule and explain such acceleration;
Create reports using a project management tool;
Interpret information obtained from project management tools;
Demonstrate the application of project management tools and
techniques, and provide hard copy examples of key project
documents.

3. PROCESS TASKS
Schedule Plan: involves outlining the activities,
tasks, dependencies and timeframes. Starts with the
Work Breakdown Structure (WBS) Scheduled on the
Critical Path Method (CPM) and the Gantt chart.
Human Resource Plan: usually involves listing
the labour and human resource requirement. The
output of the resource plan is the resource histogram.
Procurement Plan: involves identifying all
materials and equipment to be sourced from external
suppliers. The output of the procurement plan is the
procurement schedule.

4. PROCESS TASKS 2
Financial Plan: involves identifying all income
(derived from milestone payments) and expenses
(labour, equipment and materials costs). Expenses
must be balanced against income in order to ensure
that the project can meet its financial obligations.
The output of the financial plan is the cash flow
statement.
Risk Plan: involves highlighting potential risks and
documenting actions that might be taken to mitigate
them. The output of the risk plan is the risk register.

5. PROCESS TASKS 3
Quality Plan: involves providing quality targets,
assurance and control measures. The output of the
quality plan will be the quality assurance plan and
the quality control plan.
Communications Plan: involves identifying how
each of the stakeholders will be kept informed of the
progress of the project. Identifies the types of
information to be distributed, the methods of
distributing information to stakeholders and the
frequency of distribution. The communications plan
will be extensively dealt with in Learning Unit 5.

6. WORK BREAKDOWN STRUCTURE
• Enables scope of work to be broken down into
manageable elements
• Provides work packages with detailed instructions &
responsibilities
• Groups similar work together – allows logical flow of
tasks
• Backbone of project as allows for all planning and
control activities

7. WORKBREAKDOWN STRUCTURE
GRAPHICAL REPRESENTATION
See 3.2.1 page 76 Module Manual
TEXT METHOD
See 3.22 page 76 Module Manual

8. NUMBERING SYSTEM & LEVELS
• each activity and sub-activity is numbered in a special
way that identifies where it links in with the main project
• highest level is the project description . Highest level is
referred to as Level 0 (zero). It is represented by the
chosen project number
• The next level down is level 1. This level indicates all the
major activities of the project.
• The next level down is level 2. This is the sub-subdivision
of all level 1 activities and usually represents the work
that needs to be carried out.
• Level 3 is a breakdown of tasks to the most basic level.

9. STRUCTURE SUBDIVISION (P77)
• Product breakdown structure
• Organisational breakdown structure
• Contract breakdown structure
• Location breakdown structure
• System breakdown structure

10. NETWORK DIAGRAMS AND CPA
Network diagrams illustrate graphically the
relationships between tasks
Number of different methods:-
•Precedence Diagramming Method
•Activity on Arrow Method
•Activity on Node Method

11. Network diagram method
•Identify all tasks in a project
•Sequence them
•Present tasks, predecessors and durations in a
table
•Draw a network

12. Tasks, Predecessors and Durations
Identify bursts – Identify merges –
Identify tasks with tasks sharing a tasks with more
no predecessor common than one
predecessor predecessor
TASK PREDECESSOR DURATION
A - 2
B A 3
C A 2
D B 1
E C 5
F C 4
G E,F 7
H D,G 2
I H 4
NO PREDECESSOR THEN MUST BE FIRST TASK

13. bursts
Activity on Node
Precedence Diagramming Method

14. merge
Activity on Node
Precedence Diagramming Method

15. Individual exercise
1. Identify the Bursts and Merges in the example below
2. Draw a network for the situation using the Precedence
Diagramming Method
TASK PREDECESSOR
A -
B A
C A
D B,C
E D
F E

16. Network diagram
BURST
B
A D E F
C
MERGE

17. Task box
Precedence Diagramming Method uses task boxes to represent
tasks and connectors
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
YOU NEED TO MEMORISE THIS – IT WILL NOT BE GIVEN
YOU IN EXAM

18. Tasks, Predecessors and Durations
TASK PREDECESSOR DURATION
A - 2
B A 3
C A 2
D B 1
E C 5
F C 4
G E,F 7
H D,G 2
I H 4
Draw a network diagram for this example
Double-check the tasks against their predecessors
to make sure it is correct.

19. duration
An activities duration will run from the
start to the finish of the activity.. Time units can
be expressed in hours, days, weeks, months,
shifts – whatever is appropriate for the project.
For simplicity we will always use days as
our time unit.
PUT DURATIONS ONTO YOUR DIAGRAM

20. durations
Add durations to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish

21. Critical path
Calculate the critical path by adding up the durations on each
path
The longest time is the critical path
Mark the critical path in a different colour on your diagram

22. float
Float is a measure of flexibility or surplus time in
an activity’s schedule. It indicates how many days an
activity can be delayed before if affects the project
completion date
All activities on the critical path have a float of 0
Put this onto your diagram

23. float
Add floats to your network as per the task box convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish

24. Float – non critical path
SECOND LONGEST PATH
Total critical path duration – 2nd longest path duration = 2nd longest
path float
PUT THIS ONTO YOUR DIAGRAM
THIRD LONGEST PATH
Total critical path duration – 3rdlongest path duration = 3rd longest
path float
PUT THIS ONTO YOUR DIAGRAM
When a task is part of more than 1 path the smallest number is
always selected for the float

25. Early start
Early start is the earliest date by which an
activity can start assuming all of the preceding
activities are completed as planned
ES = ES preceding task + duration preceding task
PUT THIS ONTO YOUR DIAGRAM

26. EARLY START
Add EARLY STARTS to your network as per the task box
convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish

27. EARLY FINISH
Early finish is the earliest date by which
an activity can be completed assuming all of the
preceding activities are completed as planned
EF = ES + Duration -1
PUT THIS ONTO YOUR DIAGRAM

28. EARLY FINISH
Add EARLY FINISH to your network as per the task box
convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
Make sure that the last tasks EF = critical path duration. If not you
have made an error

29. Late start
Late start is the latest date an activity can
finish to meet the planned completion date
LS = ES + FLOAT
PUT THIS ON YOUR DIAGRAM

30. Late start
Add LATE STARTS to your network as per the task box
convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish

31. LATE FINISH
Late finish is the latest date an activity
can finish to meet the planned completion date
LF = EF + FLOAT
PUT THIS ON YOUR DIAGRAM

32. Late FINISH
Add LATE FINISHES to your network as per the task box
convention
ES EF
Early Start Early Finish
FLOAT TASK DURATION
LS LF
Late Start Late Finish
Check the late finishes at merges. The merging tasks should
have same LF otherwise there is an error

33. Summary CPA
ES EF EF = ES + D – 1
LS = ES + F
ES = ES PRECEDING TASK + D PRECEDING TASK
F T D LF = EF + F
F = LS –ES OR LF-EF
ES 1 ST TASK =1
LS LF F CRITICAL PATH = 0
F ON MORE THAN 1 PATH
SMALLEST SELECTED
ES FROM MERGED TASKS
SELECT HIGHEST ONE

34. GANTT CHARTS & RESOURCE PLANNING
P84 & P89 Module Manual

35. CLASSWORK Activity Preceding Duration Resources
INDIVIDUAL EXERCISE per Day
1. Draw the Network
and complete A _ 4 4
forward &
backward passes B _ 5 1
& float C A 10 1
2. Indicate the
D B 10 3
critical path
3. Draw the Gantt E C,D 10 3
chart including F B 10 6
resources
4. Draw the resource G F 9 2
histogram H E,G 5 4
I - 15 5

36. PROCUREMENT PLAN & SCHEDULE
• P Plan identifies all items to be purchased from external
suppliers
• P Schedule is the output from this plan
• Very important planning tool
• Provides the detail required to acquire goods and services
• Produces after the network diagram and the schedule Gantt
chart
• Determines what quantities and when the resources are
required

37. PROCUREMENT PLAN & SCHEDULE
• JIT delivery
• Late delivery can delay project
• Purchasing at project start not
possible – security and cashflow

38. PROCUREMENT PLAN & SCHEDULE
• Make or buy decision
• Procurement list – BOM (Bill of Materials)
• Supplier sourcing – credible suppliers must be identified
• Quotations/tenders – legally binding if accepted
• Adjudicate quotations/tenders – technical evaluation
• Generate the order – signed by delegted official of the
company
• Expedite order – follow ups
• Receive goods – delivery note compared to order
• Warehousing – safe, appropriate location
• Payment – check against order and budget prior to
payment

39. Example Procurement Schedule
Activity Description Bill of Quantity Expected Date
Material Delivery Date Required
A100 Foundations
Spades 14 6 Mar 7 Mar
Cement 700 bags 7 Mar 8 Mar
Stone 10m³ 7 Mar 8 Mar
Sand 20m³ 7 Mar 8 Mar
A200 Walls
Cement 900 bags 8 Mar 9 Mar
Sand 30m³ 8 Mar 9 Mar
Bricks 12 000 8 Mar 9 Mar

40. Time limited resource smoothing
• Applies to projects that have a fixed end
date – e.g. soccer world cup stadiums
• Only way to address resource overloads
is to increase resources or reduce scope

41. Resource limited resource smoothing
• Applies to projects that have limited
resources available, e.g.
• Where space is confined and additional people
cannot be accommodated.
• Where there is limited equipment, e.g.
machinery, computers etc.
• Where people with specialised skills are
scarce.
• Address by extending timeline or
reducing scope

42. HOW TO INCREASE RESOURCES
• Increase productivity
• Work overtime
• Work shifts
• Job & knock – goal achieved
and then home
• Sub-contracting

43. HOW TO REDUCE RESOURCES
• Re-deploy team members to
R&D
• Training
• Maintain equipment
• Hire team members out

44. FINANCIAL PLAN

45. THE BUDGET
• Expected flow of money in &
out of the project
• Large projects can run into
financial difficulty very quickly
if budget is not controlled

46. February March April
BFWD
Income
TOTAL
Materials
Labour
Other
TOTAL
Closing Balance
The project has an initial investment of R15 000. The income for February is R25 000;
for March R15 000 and April R20 000.
Material expenditure for February is R16 000; for March R14 000 and April R8 000.
Labour expenditure for February is R12 000; for March R10 000 and April R5 000.
Other expenses are: February R2 000; March R2 000 and April R1 000.
Compile the cashflow statement.

47. INDIVIDUAL EXERCISE
• Cashflow examples

48. GROUP EXERCISE – OVER TO YOU (ICE TASK 3)
• Divide into 3 equal size groups
• Research and prepare a 30 minute
lecture on the subject given to you
• Lecture must include notes, visual aids,
activities to enhance the subject matter
• All members of the group MUST take an
active part
• Present the lecture to your fellow
students

49. GROUP EXERCISE – OVER TO YOU (ICE TASK 3)
Lecture Subjects
• The Quality Plan
• The Risk Plan
• The Communication Plan
Use material from your module manual,
INPM210 and other material you obtain
from your research

50. Accelerate a Projects Schedule
• Project acceleration/compression
• Required when project completion
required before completion date
• Two methods of acceleration –
crashing and fast tracking
• Both shorten schedule without
reducing scope

51. CRASHING
• Cost/schedule trade off
• Establish max compression within acceptable
cost increase
• Additional resources allocated to tasks on
critical path
• Advantages: Shortens project time and
achieves max compression for least
additional cost
• Disadvantages: Increase total project cost,
additional resources can often add
overheads that negate time savings

52. FAST TRACKING
• Involves running phases
concurrently
• Following phase commenced
before preceding phase signed off
• Advantages: Shortens project time
• Disadvantages: Involves a high
risk if client makes changes to
plan